What Is General Liability Insurance Coverage and Do You Need It? Professor Paul Traynor gives expert advice
General liability insurance protects businesses from various claims and potential financial ruin. By understanding what general liability insurance covers you can ensure financial protection for your business.
Experts’ Advice on Finding General Liability Insurance
Paul E. Traynor
Assistant Professor of Law at School of Law at University of North Dakota
How does general liability insurance protect businesses? Can you provide an example scenario where it would come into play?
In addition to a Business Owner’s Policy (BOP) that covers a business’ property, all businesses should carry Commercial General Liability (CGL) insurance for tort liability risks. An example of a CGL risk would be if a customer is injured on your business property in some way.
All businesses should carry CGL insurance regardless of the risk they are exposed to. Still, some businesses, by the nature of their commercial activity, have a greater insurance risk than others, so you should always consult a qualified, experienced commercial agent or broker to ensure that appropriate liability coverage is in place. Without such coverage, your business is directly financially exposed to any third-party claims that may be brought, including the cost of a defense attorney.
